Your questions answered: how the MiFID II affects you
Markets in Financial Instruments Directive II, or better known as the acronym MiFIDII, came into force on January 3 2018 thanks to a Europe-wide directive that aims to create greater transparency around the operation of financial markets and those who work with them.
Many commentators say the new directive will not only create greater transparency but ensure investors get a fairer deal.
Under the new regulation the true cost of investment products, alongside various other resources such as a product risk indicator and future performance indicator, must now be disclosed and provided online through documentation called a Key Information Document.
Enhanced protection for investors is also a feature of the legislation, with financial services providers now required to complete a suitability assessment annually and each time investment advice is followed by a transaction.
To help facilitate the reporting requirements of the new directive, Irish investors will each receive a unique CONCAT code which is made up of their name, nationality and date of birth for use with each transaction. From January 3 the CONCAT code will be required to complete investment transactions.
So what does this mean for you?
In short, you’ll benefit from greater transparency and protection around costs, risk and performance thanks to the legislation’s new reporting requirements.
If you have received communication regarding the MiFIDII, now is the time to read it thoroughly and get to grips with changes that affect your investment operations.
Be sure to get in touch with us if you have any questions, our advisors are always happy to talk you through legislation changes and how they affect you.